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Credit Ratings

BA

Boeing Co (NYSE:BA) plans to raise $10 billion through a bond sale despite facing a recent quarterly loss and a credit rating downgrade by Moody's to just a step above junk status. The bond sale, managed by financial institutions including Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co., and Wells Fargo & Co., features maturities ranging from three to 40 years. The move aims to enhance Boeing's liquidity and address over $12 billion in debt due in 2025 and 2026. Despite the downgrade, there is strong demand for the bonds, with subscriptions reportedly eight times oversubscribed. BA shares are up 3.37% at $172.86.

Portfolio Pulse from Vandana Singh

April 29, 2024 | 6:10 pm

BA

Fitch Ratings has assigned a 'BBB-' rating to Boeing's new notes, indicating a negative outlook due to heightened execution risks over the next 12-24 months as Boeing works to eliminate legacy inventory. The outlook could stabilize if Boeing liquidates over 100 of its pre-2023 built 737max and half of its 787 inventories by early 2025, and if the 737max production increases toward 38 per month.

Portfolio Pulse from Benzinga Newsdesk

April 29, 2024 | 3:50 pm

BA

Moody's has maintained Boeing's Baa3 rating, citing its strong business profile despite weak performance in commercial airplanes. The negative outlook reflects expectations that challenges in the commercial airplane sector will continue through at least 2026.

Portfolio Pulse from Benzinga Newsdesk

April 29, 2024 | 3:20 pm

BA

Moody's Ratings has assigned a Baa3 rating to Boeing's new senior unsecured notes, indicating a moderate credit risk but still investment grade.

Portfolio Pulse from Benzinga Newsdesk

April 29, 2024 | 3:18 pm

BA

S&P has assigned a BBB- rating to Boeing's new unsecured bonds, indicating a lower medium grade credit quality. This rating reflects the agency's view on Boeing's financial stability and ability to meet its financial commitments.

Portfolio Pulse from Benzinga Newsdesk

April 29, 2024 | 2:17 pm

BA

SPR

Fitch Ratings projects Boeing will maintain positive annual Free Cash Flow (FCF) with the potential to reach double-digit billions by the end of 2027. It also notes that a possible all-debt-funded acquisition of Spirit AeroSystems is included within Boeing's negative outlook.

Portfolio Pulse from Benzinga Newsdesk

April 26, 2024 | 6:42 pm

BA

Fitch Ratings has affirmed Boeing's long-term unsecured notes and revolvers at 'BBB-' and its Commercial Paper (CP) program at 'F3', maintaining a negative outlook. This reflects heightened execution risks for Boeing over the next 1-2 years. Fitch forecasts around low-400s 737MAX deliveries in 2024 and expects the production rate to remain constrained below 20 per month for the first half of the year.

Portfolio Pulse from Benzinga Newsdesk

April 26, 2024 | 6:28 pm

BA

Fitch Ratings has revised Boeing's outlook to negative while affirming its 'BBB-' long-term IDR and 'F3' short-term IDR. The revision reflects expectations that Boeing may issue new debt to mitigate early-2025 cash flow risks and enhance financial flexibility.

Portfolio Pulse from Benzinga Newsdesk

April 26, 2024 | 6:28 pm

BA

SPR

S&P has revised Boeing's outlook to negative, citing discussions to acquire Spirit AeroSystems which could increase its debt levels. The revision reflects concerns over potential delays in Boeing's cash flow recovery and credit ratios, indicating an increased risk to restoring credit measures consistent with S&P's rating in the coming years.

Portfolio Pulse from Benzinga Newsdesk

April 25, 2024 | 2:25 pm

BA

S&P revised Boeing's outlook to negative due to delays in restoring credit metrics, affirming its 'BBB-/A-3' ratings. The revision reflects heightened production uncertainty, especially with quality issues affecting the 737 Max aircraft, and pending key leadership changes.

Portfolio Pulse from Benzinga Newsdesk

April 25, 2024 | 2:21 pm